Unemployment gives rise to temp work

Paul Facella, president of Inside Management, a consulting firm in Lynbrook, put an advertisement on Craig’s List for a secretary. Within 2 ½ hours, Facella was sorting through responses from more than 60 applicants, even some with graduate degrees.

“Some folks are hiring, but it’s very selective,” Facella said. “An awful lot of people are out there.”

In addition, the number of people looking is on the rise, creating a market glutted with candidates.

Long Island’s unemployment rate topped 5 percent in July for the first time since 1995 and then rose to 5.2 percent in August and September before leveling at 4.9 percent, still well above the 4.5 percent in January.

Those numbers, the highest in more than a decade, include many middle-age job seekers who are highly qualified, experienced and educated.

“There are a lot of people looking for jobs and a lot of people losing jobs. Hiring is limited,” said Linda Langer, vice president at Melville-based Access Staffing. “We’re seeing people from all disciplines, all industries. We’re seeing people who have been working in the city for many years who lost their jobs due to downsizing.”

Pearl Kamer, chief economist for Melville-based Long Island Association, said Long Island lost 2,800 jobs since last October. And that, she said, is just the beginning.

“For the first time since 2001, we’ve begun to lose private-sector jobs on a year-to-year basis,” Kamer said. “It’s pretty clear that Long Island has entered the first stages of the recession.”

Stanley H. Freundlich, managing partner at Berdon with offices in Jericho and Manhattan, said many companies are holding off on hiring due to an uncertain economy.

“People have almost cut off the spigot,” Freundlich said. “I would say that hiring policies all over New York right now are very quiet.”

Even firms that are hiring are spending longer looking in order to avoid costly mistakes in a difficult economy. “Companies are a little more cautious,” said Jean Kunzelman, manager of the Hauppauge branch of Menlo Park, Calif.-based Robert Half International. “They’re taking longer in their interview process.”

An infusion of Wall Street workers, who once commuted to New York City, are looking in Long Island for work as well. New York City’s employment market has become even more competitive as that area’s unemployment rate rose, hitting 5.9 percent in August before slipping to 5.7 percent in September and October.

Using temporary workers is a way for companies to grow cautiously, letting firms expand and shrink with demand. John Magloire, chief operating officer at Melville-based Access Staffing, said a down economy typically boosts temporary hiring. “Generally in a downsizing or recessionary time, the temporary business kicks up,” Magliore said. “Where they downsized permanent, salaried employees, they’re beginning to supplement with temporary.”

Even if firms have more candidates for fewer jobs, that doesn’t mean they’re cutting insurance or compensation for their work force. “Companies are trying to become more competitive in their benefits,” said Magliore. “They realize that is a big selling point for many employees.”

Kamer expects unemployment to grow before finally bottoming out as more Long Islanders look for work. From 1989 to 1992, Long Island lost 86,000 private sector jobs as the local defense industry melted down. She expects the area to lose 20,000 jobs over the next two years. The New York state comptroller projects the state over the next two years to lose 225,000 jobs.

“This is only the start of it,” Kamer said. “The question is what will the future bring in terms of labor changes?”